The Life Insurance Council, an apex industry body of life insurance companies, is planning to put in place a centralized database of insurance policies by December to detect and prevent fraudulent claims. “We are working on a fraud monitoring framework for the life insurance sector. It is expected to be ready by December”, said V. Manickam, secretary-general of the Life Insurance Council.
According to him, the council was in the process of short-listing the vendor who would offer the technology to build and maintain a common database where all 24 life insurance companies can share their policy data. A meeting is scheduled to finalize the terms of reference.
As banks get benefits from Cibil, this proposed fraud monitoring mechanism will help insurance companies get details of customers and detect any fraud in disclosure and claims by policyholders. The database could also help the council to study claim patterns.
The Life Insurance Council also plans to approach the State Governments to request waiver of stamp duty on the Pradhan Mantri Jeevan Jyoti Bima Yojana. However, as insurance is a state subject and they needs to be a discussed with the State Governments. Of 24 life insurance companies in the country only 10 have joined the scheme so far according to Manickam.
